What does Ethan Allen Interiors do and what are its main business segments?

What is the revenue and EPS growth rate for Ethan Allen Interiors year over year?

What is Ethan Allen Interiors's gross profit margin?

What were the key takeaways from Ethan Allen Interiors's earnings call?

What were the key takeaways from Ethan Allen Interiors’s earnings call?

What factors drove the changes in Ethan Allen Interiors's revenue and profit?

What is Ethan Allen Interiors's latest dividend and current dividend yield?

What is the market's earnings forecast for Ethan Allen Interiors next quarter?

- **Resilient Retail Growth**: 5.2% written sales increase despite 30% traffic decline, driven by qualified customers and interior design services.
- **Strong Cash Position**: $193.7M cash, no debt, with $16.4M dividends returned to shareholders.
- **Tariff Mitigation**: 75-80% North American manufacturing limits tariff impact; 5-10% price increases on overseas products.
- **Marketing Investment**: 44% YoY rise in national ad spend (paid search, social media) expected to boost future conversion rates.
- **Government Risk**: Contract delays due to shutdown; orders expected to resume post-reopening.


**【Management Opening Remarks】**
- Written sales increased 5.2% despite lower traffic, driven by qualified customers and interior design services.
- Returned $16.4 million to shareholders via dividends, ending the quarter with $193.7 million in cash and no debt.
- U.S. government sales delayed due to shutdowns, impacting contract orders.

**【CEO Commentary】**
- Focused on talent, technology, and vertical integration to maintain margins and service quality.
- Increased national marketing spend by 44% (from 2.4% to 3.4% of net sales) through paid search, social media, and direct mail.
- 75-80% of furniture manufactured in North America, mitigating tariff risks; implemented 5-10% price increases on select overseas products.

**【CFO Financial Commentary】**
- Net sales $147 million, with retail written orders up 5.2% due to improved conversion and promotional activities.
- Gross margin 61.4% from favorable sales mix, cost controls, and selective price hikes.
- Operating margin 7.2% (vs. 7.4% pre-pandemic), constrained by fixed costs and marketing investments.
- Generated $16.8 million in operating cash flow; paid $16.4 million in dividends, including a special $0.25/share dividend.

**【Q&A Highlights】**
- Retail delivered sales down 3.3% due to lower traffic, but 5.2% written order growth reflects higher conversion rates.
- Tariffs on non-furniture products remain volatile; government contract delays expected to resolve post-shutdown.
- Marketing ROI expected to materialize in future quarters from paid search/social campaigns.


Ethan Allen Interiors Inc. (ETD) Q1 2026 Earnings Call Transcript

Wholesale Segment

Retail Segment

Elimination of Inter-Company

ETD

ETD fundamentals

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